On the go: Nearly seven out of 10 advisers are wary of advising on defined benefit transfers, according to Aegon Research.
The company found that 69 per cent of advisers who are, or have been, active in advising on DB and potential transfers believe the complexity of Financial Conduct Authority regulations is impacting their likelihood of providing advice in this area.
The watchdog updated its expectations for advice in this area with new regulations introduced last year. However, many advisers say that the regulations are not completely clear and fear they could leave them liable to retrospective action.
Steven Cameron, pensions director at Aegon, said: “Previous and ongoing reviews of suitability from the FCA shows DB advice remains under intense regulatory scrutiny.”
He added: “Most people will be better off staying in their DB scheme, but it is imperative that those wishing to review their options have access to advice. This means any further reduction in the supply of advice will be to the detriment of consumers.”
Some 70,000 members could be leaving DB schemes each year, according to recent research by XPS Pensions, with up to 1.5 per cent of members opting to leave their pension scheme each year.
